What Else Does the Code Say About Interest and Unsecured Debts?

While some circuits differ, statutory interpretation suggests similar treatment for secured and unsecured claims regarding interest disallowance, unless context dictates otherwise. Attorney Siomos brings subscribers a follow-up to last week’s article.

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Ken Siomos

Staff Attorney for Marsha L. Combs-Skinner (Newman, IL)

Ken Siomos has been the Staff Attorney for Marsha L. Combs-Skinner, Standing Chapter 13 Trustee, in the Central District of Illinois, since July 2018. He was previously Staff Attorney for John H. Germeraad, the Standing Chapter 13 Trustee for the Springfield Division of the Central District of Illinois, until the Trustee’s retirement at the end of June 2018. Siomos graduated magna cum laude from the University of Illinois at Urbana Champaign College of Law. He previously attended North Central College and graduated cum laude with degrees in economics and finance.

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Henry E. Hildebrand, III

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Below-median Chapter 13 debtor bears the burden of justifying a plan longer than three years as confirmation of a five-year plan would be denied as providing insufficient justification to exceed three years. (Robinson) In re Ingram, 2023 WL 2529730 (Bankr. N.D. Ala. March 15, 2023) Case Summary Danny Ingram filed four bankruptcy cases over 20 years. He was single with...

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Chapter 13 Discharge Expanded by COVID Relief Legislation

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By Cathy Moran, Esq., Moran Law Group (Redwood City, CA) Chapter 13 debtors got a huge “gift” among the COVID relief provisions of the Consolidated Appropriations Act of 2021, signed December 27, 2020 by the president. Debtors may get a full -compliance discharge of dischargeable debts if they have a residential mortgage and have not made all the payments required...

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Happy New Year

The Academy

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Critical Case Comment – Present Tense in § 544(b)

Henry E. Hildebrand, III

February 19, 2023

When case converts from Chapter 13 to Chapter 7, the Chapter 7 trustee is not limited to the valuation of the debtor’s home as stated on the original schedules and may capture the increase in equity resulting from the property’s appreciation. (Dales) In re Adams, 2022 WL 2079725 (Bankr. W.D. Mich. June 9, 2022) Case Summary Matthew and Katherine Adams...

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Critical Case Comment – Present Value and Attorney’s Fees

October 3, 2021

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) Administrative fees and claims existing when Chapter 13 plan was confirmed would reduce the amounts received by unsecured creditors in a Chapter 7 under the “best interests of creditors test;” unsecured creditors, expected to receive payments over three years, must be paid the “present value” of that stream of...

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Sneak Attack on Consumer Rights

Cathy Moran

November 3, 2024

“These suits now regularly result in the plaintiff being in deep debt to the IRS with insufficient funds to pay even the tax. AKA: Tax Hell.”

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Objections to Claims: Two of These Creditors Are Not Like the Others [1]

June 13, 2021

By Daniel M. Tavera, Law Clerk to the Honorable John P. Gustafson, U.S. Bankruptcy Court for the Northern District of Ohio (Toledo) Objections to claims may generally be served on the claimant by first-class mail to the person designated to receive notices on the most recent proof of claim for the creditor. This simplifies the service for claim objections for...

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Use All Channels to Educate Bankruptcy Debtors

Cathy Moran

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The skills of a consumer bankruptcy lawyer must include a healthy dose of the skillset of a teacher. More on listening/communicating with Clients: Who Is Stupid Here? Why Listening Is a Bankruptcy Lawyer’s Superpower

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Missed Notices, Big Consequences: Ninth Circuit Clarifies Creditor Rights

Henry E. Hildebrand, III

September 29, 2024

Creditor with inadequate notice holds a fully nondischargeable obligation following a Chapter 7 discharge.

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2022 Bankruptcy Procedure Year in Review: Revised Statute and Rules and Selected Cases – Part 1 Amended Statute and Rules Amendments Not Related to SBRA

Lawrence R. Ahern, III

November 6, 2022

Introduction This year sees changes in the Code and numerous new and amended Rules of BankruptcyProcedure that are to be effective December 1. The statutory amendments and the changes in therules that do not relate to cases under subchapter V of Chapter 11 are summarized below. They will be followed, by a digest of other new and amended rule and...

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